Inside Asian Gaming

INSIDE ASIAN GAMING | February 2014 26 COVER STORY W hile their developments may not be as newsworthy as some, other countries around the region have provided some news that bears noting. In Thailand, a report by the prestigious Chulaongkorn University says the country should make its play for a share of Asia’s gambling boom by legalizing casinos. The report argues that Thailand’s antiquated gambling laws are leaving it behind while several Asian markets, notably Japan, Taiwan and South Korea, are preparing to legalize or expand. In Nepal, the government continues to try to regularize licensing and tax collections in the small casinos catering mostly to Indian players. The casinos have mostly ignored an order to renew their licenses. The Nepal Recreation Center had its permit revoked in 2011 but continued to operate into 2013. The government has also passed new regulations that include the doubling of entry fees for locals, and at least one casino, the Pokhara Grande, has closed, blaming the elevated fees. At last report, others were expected to follow. This might prove a further fillip for India, whose small market in Goa continues to flourish in the face of official ambivalence and some significant community opposition. The size of the market is difficult to determine precisely. Official numbers place it at the equivalent of US$145 million-$165 million a year. But those close to it say the real numbers are much higher. If taxes and fees are any indication—the casinos in total paid the equivalent of $43.6 million to the state in the 2012-2013 financial year—they would be correct. The bigger news is the scheduled opening this year of a major resort in the nearby state of Daman. Hospitality and property development giant Delta Corp., Goa’s largest operator, is behind it. The 60,000-square-foot resort will include a 187-room hotel. Delta also has its sights on Sri Lanka and is seeking partners for land it controls in Colombo. In the Pacific, gaming is still discussed around the Marianas. Saipan’s economy has been hit hard by falls in tourism and the closure of its textile industry, and its sovereign wealth fund is almost depleted. It has discussed opening up to gaming, but the consensus is that its locationmakes it impractical as a major destination, and the government is asking for too much in upfront commitments from developers. Guam is home to a profitable machine gaming market, although its legality is the subject of some lively intra-governmental debate. Charitable bingo is legal, but a proposal floated last year to open the game to commercial operators was rejected by voters. retail shopping and 350 marina berths. There was no initial word on whether the resort would include gaming, but the timing suggests a distinct possibility. VinaCapital Group, the country’s largest fund manager, is planning to build a $4 billion casino resort in Quang Nam province, also on the south-central coast, and says it has secured a partner for the project to replace Genting, which pulled out a while back. Vina also owns a beach resort in Da Nang. Aside from Ho Tram, the existing market consists of about 500 slots and EGMs and upwards of 75 table games, all located in tourist hotels, some of which, like the Crowne International at Da Nang Beach and the Do Son and the Royal Hotel and Villas on picturesque Halong Bay, are marketed to an international clientele. The Chinese borderlands have also proven lucrative. Mong Cái in Quang Ninh province in the northeast boasts a recently opened casino. Three hundred kilometers from Hanoi in the northwestern mountains adjoining China’s Yunnan province is one of the largest slot floors in the country, in the Lao Cai International Hotel, controlled by relatives of Genting Group Chairman Lim Kok Thay. Another resort, the Ratana Casino Resort which is said to be under Korean management, is reported to be opening in Ratanakkiri on the Cambodian border in March. The resort will feature 60 table games, 60 EGMs and 80 hotel rooms. Nationwide, another 740 or so EGMs exist in more than 20 clubs. The key to the industry’s future is whether locals will be able to access the market. The latest news on this front concerns the development at Halong Bay, in which the government plans to allow locals to gamble as part of a pilot project, though the timing and investment parameters are unclear. Certainly the appetite for gaming exists, given the huge numbers of Vietnamese patronizing NagaWorld and the Cambodian border casinos. Legal pari-mutuel betting takes place at a horse track in Ho Chi Minh City and more recently at a greyhound track in the coastal province of Ba Ria-Vung Tau, where Ho Tram is located. There is also a popular public lottery whose sales account for about 2.5% of gross domestic product. The Internet is illegally taking tens of millions of dollars in wagers annually, according to official estimates; this constitutes a vast black market the government says it wants to shut down. THE OTHER PLAYERS Mixed Developments Rose Rock Group, an investment firm backed by the Rockefeller family, and Vung Ro Petroleum, a Vietnamese oil company, have selected a site on the south-central coast for a luxury resort with 760 hotel rooms, 4,400 residences, retail shopping and 350 marina berths.